Unregulated, free market produces economic prosperity

Friday , September 14, 2012 - 2:21 PM

Walter Winters

Editor,

In support of Obama’s presidential campaign, former President Clinton has criticized efforts to deregulate our economy. He blames deregulation for the economic problems in this country. History has proven that when the free market has been unleashed from government regulations, economic prosperity has exploded. Following World War II, a sharp reduction in government spending and controls sparked an economic boom that defied conventional wisdom.

Mainline historians and big-government politicians still maintain that the main reason for Europe’s economic resurgence after the war was the Marshall Plan. Actually, it only had a minor effect on the Europe’s economic recovery. The United States gave $25 billion (about 10 percent of America’s gross domestic product) for the Marshall Plan, supposedly to rebuild Europe and its devastated infrastructure and economies.

Professor Thomas Woods, author of "Politically Incorrect Guide to American History," wrote that the Marshall Plan "worked no better than any other giveaway program. France and Italy began their economic recoveries before any Marshal Plan aid was distributed. Austria and Greece began to recover only as [the Marshall Pan] aid was being phased out…. Marshal Plan propagandists have attempted to take credit for the West German’s miraculous economic recovery."

Wage and price controls installed by the Nazis remained in force after the war, worsening the economic devastation.

The German economic miracle began only when government controls were lifted, long before the arrival of the Marshall Plan "aid."

After the war, Congress abolished the unconstitutional Office of Price Administration, which was created by executive order. The unelected OPA officials had been given power to freeze prices. About 90 percent of the prices of retail products were fixed by government mandate. Fixed wages and prices created shortages of essential items.

President Calvin Coolidge produced an unprecedented level of prosperity in America with his deregulation policies and vetoes that prevented government intervention into the free market. Speaking of Coolidge’s administration, President Reagan stated, "We had probably the greatest growth and prosperity that we’ve ever known."